March 4, 2009

Now we get it: Bloomberg thinks poaching companies over state lines is bad, but poaching teams is not so bad

Atlantic Yards Report

When Smith College sports economist Andrew Zimbalist, Forest City Ratner's paid consultant, calculated (report in PDF) expected tax revenues from the planned Atlantic Yards arena, one key element was what Zimbalist called the "recapture of tax revenues presently generated in New Jersey," current home of the Nets basketball team.

For Bruce Ratner's Atlantic Yards project to be a net gain for NYC, it MUST "recapture" enough tax revenue from NJ fans. But if NJ wanted to do the same, dems is fighting words:

Guess what: the same people who boosted AY now warn that recapture of tax revenues across state lines is a bad idea. Consider an article in Monday's New York Times, headlined New York Vulnerable to Poaching in Recession, which noted how New Jersey was offering incentives to companies to move there.

The Times reported:

Those discussions have infuriated Mayor Michael R. Bloomberg, who complained publicly about New Jersey’s efforts in a news conference last month. And they have been sharply criticized by some economists, who assert that such incentives mainly benefit established companies with lobbying clout and are not very effective in creating new jobs.